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Sunday, August 23, 2009
Sunday, August 16, 2009
A New Trend?
Apparently being an auctioneer is cool and hip (or we'll say "phat" to those under 35). In the past few months, three new auction firms have sprung up, and their names are very familiar.
In June, Thomas Schwenke, noted dealer of American Federal antiques, held the inaugural sale at Woodbury Auction, LLC in Woodbury, Connecticut. Five hundred lots from various consignors, and it looks like the results were good...a Charles II japanned desk-and-bookcase leading the way at just over $23,000.
Then, this past week, we see two announcements, one from Krause Publications, publishers of Antique Week, that they'll be morphing their live auction platform, Collect.com, into an auction firm, with their first auction scheduled for November 5. Also, MAD just posted an article on the May 2010 premier of Leigh Keno Auctions. Keno, veteran Americana dealer and PBS star, announced the auction company will sell anything and everything over $100.
With the current market, it may seem an odd time to start an auction company, but there is logic here. First, there is the ever-important cash flow. Dealers and trade papers have bills that need paid every month, so they need a reliable and regular flow of revenue to meet these expenses. A decline in print subscriptions or a string of shows with slow sales, and it can get tough. With auctions, you know that revenue will be coming in because the antiques will sell and you'll get commission dollars.
Additionally, these folks are capitalizing on what they see as opportunities. Antique Week is read by thousands of folks every week and they already have the technology in place for online auctions, so actually running auctions might be seen as the logical next step. For Mssrs. Keno and Schwenke, auctions might be a way to turn "no thank yous" into income. Because of their reputations, each probably gets hundreds of calls each year from folks wanting to sell single items or entire collections/estates. These guys deal in high-end stuff and thus probably only buy a teeny tiny fraction of what's offered to them. However, by offering an auction venue, they might be able to convert a high percentage of these calls to consignments, and thus commission dollars.
So...will these new ventures be successful? Too soon to tell, and there will be great challenges. Antique Week is likely to hear from their advertisers, many of whom are auctioneers who will now see the weekly trade paper as direct competition. Will AW continue to offer great ad spots to their subscribers/advertisers? Or will their own auctions take over the center spread of the National Section? Will Keno and Schwenke be able to maintain two busy schedules (that of a dealer, with shows and shop hours, and that of an auctioneer)? Will they be able to maintain consignment flow after the novelty of their venture has worn off? The competition for quality consignments is cut-throat, and it may be hard for a new firm, even with their venerable names, to compete long-term with the trusted names of Skinner, Northeast, Eldred's, Pook, Doyle, and others, including of course, Garth's.
We wish them all luck, and look forward to reporting on them as their auction businesses develop.
In June, Thomas Schwenke, noted dealer of American Federal antiques, held the inaugural sale at Woodbury Auction, LLC in Woodbury, Connecticut. Five hundred lots from various consignors, and it looks like the results were good...a Charles II japanned desk-and-bookcase leading the way at just over $23,000.
Then, this past week, we see two announcements, one from Krause Publications, publishers of Antique Week, that they'll be morphing their live auction platform, Collect.com, into an auction firm, with their first auction scheduled for November 5. Also, MAD just posted an article on the May 2010 premier of Leigh Keno Auctions. Keno, veteran Americana dealer and PBS star, announced the auction company will sell anything and everything over $100.
With the current market, it may seem an odd time to start an auction company, but there is logic here. First, there is the ever-important cash flow. Dealers and trade papers have bills that need paid every month, so they need a reliable and regular flow of revenue to meet these expenses. A decline in print subscriptions or a string of shows with slow sales, and it can get tough. With auctions, you know that revenue will be coming in because the antiques will sell and you'll get commission dollars.
Additionally, these folks are capitalizing on what they see as opportunities. Antique Week is read by thousands of folks every week and they already have the technology in place for online auctions, so actually running auctions might be seen as the logical next step. For Mssrs. Keno and Schwenke, auctions might be a way to turn "no thank yous" into income. Because of their reputations, each probably gets hundreds of calls each year from folks wanting to sell single items or entire collections/estates. These guys deal in high-end stuff and thus probably only buy a teeny tiny fraction of what's offered to them. However, by offering an auction venue, they might be able to convert a high percentage of these calls to consignments, and thus commission dollars.
So...will these new ventures be successful? Too soon to tell, and there will be great challenges. Antique Week is likely to hear from their advertisers, many of whom are auctioneers who will now see the weekly trade paper as direct competition. Will AW continue to offer great ad spots to their subscribers/advertisers? Or will their own auctions take over the center spread of the National Section? Will Keno and Schwenke be able to maintain two busy schedules (that of a dealer, with shows and shop hours, and that of an auctioneer)? Will they be able to maintain consignment flow after the novelty of their venture has worn off? The competition for quality consignments is cut-throat, and it may be hard for a new firm, even with their venerable names, to compete long-term with the trusted names of Skinner, Northeast, Eldred's, Pook, Doyle, and others, including of course, Garth's.
We wish them all luck, and look forward to reporting on them as their auction businesses develop.
Sunday, August 9, 2009
Back from New England...
Five days and about 1,500 miles. That's a long trip. We saw lots of this:
It's a good thing we like each other because we spend countless hours on roads like this.
But take another look at the photo...beautiful scenery, no? Sure, a few gray clouds in the sky, and the orange signs signify that construction headaches may be coming, but we like to think more positively. This is a beautiful stretch of road...but what's just around that bend may be even better.
What's this have to do with collecting antiques? Plenty. We went to New Hampshire with a healthy amount of optimism. Maybe we still have a while yet in this recession, but the marketplace has shown some signs of an upward swing of late. And we weren't disappointed - New Hampshire has bolstered our optimism. Dealers were selling and prices at the Northeast and Skinner auctions bracketing the week were good.
What we found most interesting is something we've seen at other shows the past 12 months or so. Prices are down. We know that they are at auctions, but they are at shows, too. Dealers, at least those who want to make sales, are adjusting their prices. And it's working!
We don't expect prices (at auction or at shows) to return to what they were 5-10 years ago. But that's okay. In fact, it's good. (We even had one dealer express relief that prices have come down because "things were getting out of hand and unaffordable" for a while.) We're in a place where we need to attract new collectors, and it will be much easier with lower prices. Let's face it, if you're telling young folks that they should collect, it's hard to convince them if they need a big bank account. Now, it's possible to buy very good antiques at very reasonable prices. We, as dealers and auctioneers, could, and should, start talking about value when we talk about the antiques we sell. If you're talking to someone who needs a place to store their skivvies, you can talk to them about getting the most for their money. How about a new slogan: Antiques. Better style. Better value.
So let's look at bends in the road with some hopefulness. Even if the orange signs mean stop-and-go-traffic for a while, it might allow you to enjoy the scenery for a change.
It's a good thing we like each other because we spend countless hours on roads like this.
But take another look at the photo...beautiful scenery, no? Sure, a few gray clouds in the sky, and the orange signs signify that construction headaches may be coming, but we like to think more positively. This is a beautiful stretch of road...but what's just around that bend may be even better.
What's this have to do with collecting antiques? Plenty. We went to New Hampshire with a healthy amount of optimism. Maybe we still have a while yet in this recession, but the marketplace has shown some signs of an upward swing of late. And we weren't disappointed - New Hampshire has bolstered our optimism. Dealers were selling and prices at the Northeast and Skinner auctions bracketing the week were good.
What we found most interesting is something we've seen at other shows the past 12 months or so. Prices are down. We know that they are at auctions, but they are at shows, too. Dealers, at least those who want to make sales, are adjusting their prices. And it's working!
We don't expect prices (at auction or at shows) to return to what they were 5-10 years ago. But that's okay. In fact, it's good. (We even had one dealer express relief that prices have come down because "things were getting out of hand and unaffordable" for a while.) We're in a place where we need to attract new collectors, and it will be much easier with lower prices. Let's face it, if you're telling young folks that they should collect, it's hard to convince them if they need a big bank account. Now, it's possible to buy very good antiques at very reasonable prices. We, as dealers and auctioneers, could, and should, start talking about value when we talk about the antiques we sell. If you're talking to someone who needs a place to store their skivvies, you can talk to them about getting the most for their money. How about a new slogan: Antiques. Better style. Better value.
So let's look at bends in the road with some hopefulness. Even if the orange signs mean stop-and-go-traffic for a while, it might allow you to enjoy the scenery for a change.
Sunday, August 2, 2009
A Glimmer of Hope....
Andrew here...and I've been very busy. A successful auction last weekend, and a slew of consignment pickups. Could this mean that the market is starting to climb out of the pit we've been in? Probably too soon to say now, but it's allowing me to go into Manchester weeks with a bit of optimism.
Stay tuned....
Stay tuned....
Tuesday, July 21, 2009
FYI: Protecting Consignors
Last month, Clayton Pennington's editorial in Maine Antique Digest urged auction houses to help protect consignors through the use of escrow accounts and the requiring of internet bidders to leave credit card numbers in order to leave bids. Both are good ideas.
The use of escrow accounts for consignors is proscribed under Ohio auction law. All payments from auction buyers in Ohio must be deposited by the auctioneer into an escrow account and that account cannot be used for anything else by the auctioneer. In fact, co-mingling of funds (mixing the auctioneer's money with auction proceeds) is one of the deadly sins an Ohio auctioneer can commit that will often get his or her license immediately suspended or revoked. This is good policy that helps protect consignors, and, frankly, all states should require the use of escrow accounts.
Requiring a credit card on internet bids, or regular absentee bids for that matter, is also wise, but doesn't necessarily solve the problem. Andrew had an experience when he worked for an auction firm in Cincinnati that illustrates this. A remote buyer bids on, and buys, a porcelain figure in an auction. Thirty days pass, two invoices are sent, and no payment has been received, so the buyer's credit card is charged for the purchase price and shipping and the item is sent. Within a week, notice was received from the credit card company that the buyer is claiming fraud (the figure was allegedly damaged and that damaged was not disclosed before bidding) and the moneys have been refunded to them. So...now the buyer has the item and the money.
You see, organizations like banks, the post office, UPS, etc. etc. simply do not understand antiques or how the antiques business operates (have you ever tried to explain to FedEx that they could pay to have the item fixed, but it's still worth less because now it's repaired???). In this case, the figure had a factory flaw that was described in the condition report, but the person at the bank didn't know the difference between a factory flaw, a crack, or a chip, so they immediately believed the buyer and refunded their money, and left the auction house hanging. Andrew did end up getting the item back, but after two months of arguing with the bank, appealing their decision, and hounding the buyer.
This is the flaw in the use of credit cards as "security" against deadbeat bidders: it's simply too easy for someone who is determined not to pay to actually just not pay. Use a bad credit card number (does anyone actually confirm card numbers prior to executing bids? And we'll talk later about the expectations of bidders and how frustrating extending deadlines would be if it became necessary to allow time prior to auction for a verification process....), lying about damage or some other issue to get a payment refunded, or had the auction house charged the buyer the purchase price but not shipped it, appealing the charge on the basis of non-receipt. Auction houses are simply at the mercy of the banks who are ignorant of how this process is suppose to work.
What might be a better way to protect consignors, and auction houses, against deadbeat bidders is a national database of non-paying bidders. Let an objective organization, such as the National Auctioneers Association, manage it. If an auctioneer encounters a deadbeat bidder, let him or her submit proof to the organization and that bidder's info gets entered into the database. Auction houses could run checks against the database for bidders new to them. If Joe Deadbeat can no longer register to bid at auctions because he's in the database, then that'll be fewer consignors who get disappointed by not getting paid for their item(s).
Bidders have all sorts of protection against crooked auctioneers (law enforcement, attorney general, auctioneer licensing organization, and, of course, banks), but auctioneers and their consignors have little protection against crooked bidders. And the last thing an auctioneer wants to do, even more than not getting paid, is disappoint a consignor.
The use of escrow accounts for consignors is proscribed under Ohio auction law. All payments from auction buyers in Ohio must be deposited by the auctioneer into an escrow account and that account cannot be used for anything else by the auctioneer. In fact, co-mingling of funds (mixing the auctioneer's money with auction proceeds) is one of the deadly sins an Ohio auctioneer can commit that will often get his or her license immediately suspended or revoked. This is good policy that helps protect consignors, and, frankly, all states should require the use of escrow accounts.
Requiring a credit card on internet bids, or regular absentee bids for that matter, is also wise, but doesn't necessarily solve the problem. Andrew had an experience when he worked for an auction firm in Cincinnati that illustrates this. A remote buyer bids on, and buys, a porcelain figure in an auction. Thirty days pass, two invoices are sent, and no payment has been received, so the buyer's credit card is charged for the purchase price and shipping and the item is sent. Within a week, notice was received from the credit card company that the buyer is claiming fraud (the figure was allegedly damaged and that damaged was not disclosed before bidding) and the moneys have been refunded to them. So...now the buyer has the item and the money.
You see, organizations like banks, the post office, UPS, etc. etc. simply do not understand antiques or how the antiques business operates (have you ever tried to explain to FedEx that they could pay to have the item fixed, but it's still worth less because now it's repaired???). In this case, the figure had a factory flaw that was described in the condition report, but the person at the bank didn't know the difference between a factory flaw, a crack, or a chip, so they immediately believed the buyer and refunded their money, and left the auction house hanging. Andrew did end up getting the item back, but after two months of arguing with the bank, appealing their decision, and hounding the buyer.
This is the flaw in the use of credit cards as "security" against deadbeat bidders: it's simply too easy for someone who is determined not to pay to actually just not pay. Use a bad credit card number (does anyone actually confirm card numbers prior to executing bids? And we'll talk later about the expectations of bidders and how frustrating extending deadlines would be if it became necessary to allow time prior to auction for a verification process....), lying about damage or some other issue to get a payment refunded, or had the auction house charged the buyer the purchase price but not shipped it, appealing the charge on the basis of non-receipt. Auction houses are simply at the mercy of the banks who are ignorant of how this process is suppose to work.
What might be a better way to protect consignors, and auction houses, against deadbeat bidders is a national database of non-paying bidders. Let an objective organization, such as the National Auctioneers Association, manage it. If an auctioneer encounters a deadbeat bidder, let him or her submit proof to the organization and that bidder's info gets entered into the database. Auction houses could run checks against the database for bidders new to them. If Joe Deadbeat can no longer register to bid at auctions because he's in the database, then that'll be fewer consignors who get disappointed by not getting paid for their item(s).
Bidders have all sorts of protection against crooked auctioneers (law enforcement, attorney general, auctioneer licensing organization, and, of course, banks), but auctioneers and their consignors have little protection against crooked bidders. And the last thing an auctioneer wants to do, even more than not getting paid, is disappoint a consignor.
Thursday, July 16, 2009
Anyone Headed to New England??
As the summer reaches its midpoint, it's time to start thinking about antiquing in New Hampshire. Between Northeast Auctions' annual Summer Americana Auction and the shows in Manchester (and this year, in nearby Marlborough, MA, a sale at Skinner), there loads of great stuff to look at, to learn about, and to buy!
I [Andrew] will be there, visiting friends and colleagues at the shows and previewing the Skinner auction. Sadly, I won't be able to get to the Northeast sale. But, I'm sure I'll see plenty of great stuff.
So, if you find yourself in NH in a few weeks, be on the lookout for a man with no gray hair (i.e., me, a young collector who actually has a little bit of gray). I'll also be picking up some consignments for Garth's fall auctions and I'll be happy to do so for you as well!
I [Andrew] will be there, visiting friends and colleagues at the shows and previewing the Skinner auction. Sadly, I won't be able to get to the Northeast sale. But, I'm sure I'll see plenty of great stuff.
So, if you find yourself in NH in a few weeks, be on the lookout for a man with no gray hair (i.e., me, a young collector who actually has a little bit of gray). I'll also be picking up some consignments for Garth's fall auctions and I'll be happy to do so for you as well!
Wednesday, July 8, 2009
That's more than what I paid....
I (Andrew) hear this a lot. Too much, in fact. When talking with a potential consignor, I often give them my thoughts on what a given object might bring at auction (always subject to further examination and further research, of course). So often, when I say that Joe Consignor's refinished cherry 4-drawer Sheraton chest will probably bring 500-800 at auction, I get, "But I paid more than that twenty years ago." I then, of course, begin lecture number 313, which is on the economics of the ever-changing marketplace and that trends come and go, and that today's marketplace emphasizes different things than the marketplace of the 1980s.
It seems to me that a large number of collectors, when they were building their collections, either assumed, or were told by dealers/auctioneers, that antiques appreciate in value. These collectors are then disappointed by my estimate, and then often again when their things sell.
It can be true that antiques appreciate in value. It can also be true that antiques can depreciate in value. Frankly, I don't believe that anyone can reliably predict what will and will not appreciate. Sure, if you are fortunate enough to be able to buy the very best (best forms, best decoration, best condition, etc. etc. etc.), AND you don't have to pay top retail (say, at the Winter Show in NY), then your collection might have a better-than-average chance of selling for more than you paid. Maybe. Let's not forget about trends. Victorian was all the rage a generation ago. Today...not so much. In the early 2000s, weathervanes were breaking records, but that market has already cooled, and I really don't believe the $6 million Indian weathervane purchased in NY a few years ago will ever achieve that price again.
On one level, this trend frustrates me. As an auctioneer, I feel like I'm getting blamed because the market has changed and someone's stuff isn't worth as much as it once was. But on a more important level, this trends saddens me. These life-long collectors have poured their hearts and souls into their collections, have felt a quickened pulse when "on the hunt" for their next purchase, and smiled every time they looked around their home and the objects that filled it. These folks' last emotion related to their collection is that of disappointment. Folks, that's truly unfortunate. It's hard enough to let go of your lifetime collection. I have had collectors cry when I emptied their house because they know that they will miss the stuff I'm taking to auction. I can appreciate that. I'm going to be like that. But then, for some reason, some of these same collectors seem to forget all the good memories, all the joy, all the passion, and focus only on the dollars and cents, thus the disappointment. Yes, I'm sure it might be a bit of a blow to the ego that the market doesn't "appreciate" your collection like you do. But you know what? No one will appreciate YOUR collection like YOU do. So why worry about it?
I do realize that for some, the financial hit might be troubling. I'm truly sorry for that. And that is why we NEVER encourage anyone to think of their antiques as investments. We want folks to collect because they love the stuff. When we talk to our friends about antiques, we talk about history and art and usefulness and green. Yes, we also talk dollars and cents, but we talk about "retained value," not appreciation or investment.
Living surrounded by history and art...that's why we buy this stuff. And when it's time to sell, we're going to be thankful that we were able to act as stewards for a collection of history and art. If we make money, great; if we don't, we'll consider the loss a small price to pay for the memories. Isn't that why you started collecting in the first place?
It seems to me that a large number of collectors, when they were building their collections, either assumed, or were told by dealers/auctioneers, that antiques appreciate in value. These collectors are then disappointed by my estimate, and then often again when their things sell.
It can be true that antiques appreciate in value. It can also be true that antiques can depreciate in value. Frankly, I don't believe that anyone can reliably predict what will and will not appreciate. Sure, if you are fortunate enough to be able to buy the very best (best forms, best decoration, best condition, etc. etc. etc.), AND you don't have to pay top retail (say, at the Winter Show in NY), then your collection might have a better-than-average chance of selling for more than you paid. Maybe. Let's not forget about trends. Victorian was all the rage a generation ago. Today...not so much. In the early 2000s, weathervanes were breaking records, but that market has already cooled, and I really don't believe the $6 million Indian weathervane purchased in NY a few years ago will ever achieve that price again.
On one level, this trend frustrates me. As an auctioneer, I feel like I'm getting blamed because the market has changed and someone's stuff isn't worth as much as it once was. But on a more important level, this trends saddens me. These life-long collectors have poured their hearts and souls into their collections, have felt a quickened pulse when "on the hunt" for their next purchase, and smiled every time they looked around their home and the objects that filled it. These folks' last emotion related to their collection is that of disappointment. Folks, that's truly unfortunate. It's hard enough to let go of your lifetime collection. I have had collectors cry when I emptied their house because they know that they will miss the stuff I'm taking to auction. I can appreciate that. I'm going to be like that. But then, for some reason, some of these same collectors seem to forget all the good memories, all the joy, all the passion, and focus only on the dollars and cents, thus the disappointment. Yes, I'm sure it might be a bit of a blow to the ego that the market doesn't "appreciate" your collection like you do. But you know what? No one will appreciate YOUR collection like YOU do. So why worry about it?
I do realize that for some, the financial hit might be troubling. I'm truly sorry for that. And that is why we NEVER encourage anyone to think of their antiques as investments. We want folks to collect because they love the stuff. When we talk to our friends about antiques, we talk about history and art and usefulness and green. Yes, we also talk dollars and cents, but we talk about "retained value," not appreciation or investment.
Living surrounded by history and art...that's why we buy this stuff. And when it's time to sell, we're going to be thankful that we were able to act as stewards for a collection of history and art. If we make money, great; if we don't, we'll consider the loss a small price to pay for the memories. Isn't that why you started collecting in the first place?
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